Gold prices rose on Friday, after falling from 1-1/2-year highs in the previous session, as the dollar remained weak despite US President Donald Trump backing a stronger currency. Spot gold had climbed 0.6 percent to $1,355.16 per ounce by 0726 GMT. It has gained 1.8 percent so far this week.
Spot gold on Thursday hit 1,366.07, its highest since Aug. 3, 2016, but reversed gains after Trump told CNBC in Davos, Switzerland, that he wanted to see a strong dollar. US gold futures were down 0.6 percent at $1,354.70 per ounce. Trump's comment appeared to contradict comments made by Treasury Secretary Steven Mnuchin a day earlier.
The dollar weakness is continuing to support gold prices, helping to hold them steady despite Trump's comments, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "There is some very good support for gold on the downside around $1,340 and a resistance around $1,360," he said.
Gold could break above $1,500 an ounce this year for the first time since its 2013 crash, GFMS analysts at Thomson Reuters said on Thursday, with the risk of a drop in surging equities and political instability boosting its appeal as a safe-haven investment.
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